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Betterment charges a management fee of 0.15% to 0.35%, depending on your balance and auto-deposit, and is prorated across the entire year and is charged at the end of each calendar quarter (every three months).

For accounts under $10,000 we provide 2 pricing options. For those who have automated deposits turned on for at least $100/month, the rate is just 0.35%. If you choose not to automate your savings, the fee is still a low flat rate of just $3/month. This is either/or and never combined. After your account reaches $10,000 there are no longer deposit requirements and we focus on reducing your fee down to just 0.25% per year, and then further to 0.15% when your account is over $100,000.

In other words, for those clients with pricing 0.15% to 0.35%, every three months Betterment charges 0.0375% to 0.0875% based on your average balance for the period. If you withdraw all of your money before the end of the quarter you are charged a prorated fee only for the days your money was managed by Betterment.

Your money is invested in a fully diversified index-fund portfolio made up of 12 exchange traded funds or ETFs. Each of these ETFs has an expense ratio (they range from .09%-.17% depending on your allocation - this is about 15 cents for every $100 you invest), which you would pay no matter where you purchased these funds. The cost charged by the funds is a little harder to see because the fund companies get their money by slightly reducing the dividends they pay out. Rest assured that Betterment works hard to offer funds with some of the lowest fees.

No. Betterment’s fee is a straightforward 0.35% to 0.15%, depending on your balance, and is prorated across the year based on the average daily balance in your account, and a portion of this is charged quarterly (every 3 months). So if you withdraw money from your account, your average daily balance will decrease and your fee for the quarter will reduce accordingly. If you withdraw your entire balance before the end of the quarter we will simply charge the prorated fee at that time.

We do not have fees for accounts with a $0 balance, so if you need your money you can still keep your account open without penalty.

Your fees are based on your average balance of your entire Betterment account, not each goal. Therefore, you can have as many goals as you like without incurring additional fees. If you wanted to qualify for the Builder plan - which requires a minimum auto-deposit of $100 and a balance less than $10,000, then an auto-deposit for a cumulative $100/month suffices (in other words, you do not have to deposit $100 into each goal).

Our system is automatically designed to put you in the cheapest fee plan possible, and is prorated by the day. You can read more about our fee plans here.

No. Market fluctuations will not adversely impact the Betterment fee tier that you are in. For example, if you deposit $100,000 in your account and a dip in the markets causes your account balance to fall to $99,000 you will still remain in the 0.15% Best pricing tier.

However, if you have deposited $99,000 and the markets move you above $100,000 - we would actually reduce your fees from 0.25% to 0.15%. Your fee would stay at 0.15% even if additional market changes bring you back down to $99,000. This is because our system is designed to look for the moment we can upgrade you, everyday.

Only withdrawals that result in a balance below the fee tier threshold will result in a reevaluation of your fee tier that may bring your fee tier down.

Yes, you can withdraw your money from Betterment at any time. We do not charge you any trading fees nor penalties for making withdrawals or closing accounts. It’s your money, and is always accessible to you.

Withdrawals generally take about 4-5 business days to process. However, if you have recently made a deposit, your withdrawal may be delayed due to the recent deposit needing to fully settle first.

Unless otherwise specified, all return figures shown above are for illustrative purposes only, and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market circumstances.

Brokerage services provided to clients of Betterment LLC by Betterment Securities, an SEC registered broker-dealer and member FINRA/SIPC.
Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Betterment's charges and expenses. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. See full disclosures for more information. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment is not registered. Market Data by Xignite.